A City in The Principality of Wales . Moreover a flat in that City. And one man in that flat in that City in Wales . Amazon are under the impression that there over 11,000 Amazon sellers in this one flat in Cardiff .
His Majesty’s Revenue & Collection have discovered that man in that flat owes them over £500,000 in unpaid VAT. That equates to £2.5 million in sales . Pretty impressive for one man to run 11,000 companies based five thousand miles away.
It is of no surprise to learn that the said man was unaware of his global empire . Or rather didn’t, until he found 508 letters in his mail box ( I have to say I think I might notice if there were 50. Ari would have noticed one and eaten it ).
He instructed his solicitor to contact HMRC who at the time knew of no such enquiry . Moreover the companies remained on Amazon.
Amazon are the cutting edge of technology. Or so we assume . It may come as no surprise to many UK Tax payers that many of their records with UK Government are actually held and maintained on an Amazon Cloud. Yet neither party are able to detect a dodgy set up where 11,000 (Chinese) companies are registered for VAT at one Address where all 11,000(apparently) companies have unpaid VAT bills.
This would all be mildly amusing, but not for Dylan Davies-The flat owner, if it were not down right scary. I have no doubt Amazon would say that this type of problem is so big (as they do for counterfeiting) that it is impossible to stop completely . A rather cynical voice in my head , says ‘why would they?’. They have made the sales taken the commissions and if the problem is too big to stop it is probably too big to want to stop.
The question is than to be asked of HMRC. Why have they allowed 11,000 overseas companies to be VAT registered at a private address? You don’t need proof of address for VAT registration (slightly odd I think). Does none of this sound some sort of warning bell within our august group of revenue collectors on behalf of the His Majesty’s Government? Errr…. apparently not . Same old story but not quite on the grand scale of the Covid Loan scams( note the the difference is was Her Majesty’s Government for the loans.)
Over the next six months he got tax bills for 11,000 Chinese companies after they fraudulently used his Cardiff address to register for VAT.
“It’s been horrendous,” said Mr Davies, who got letters from HM Revenue & Customs (HMRC) demanding tax amounting to £500,000.
HMRC admitted the situation did not raise alarm bells at the tax office.
“You’d think there’d be a systems with the technology today that would have picked it up immediately,” Mr Davies said.
He told the police and HMRC but the brown letters just kept comingBBC News
Back to Amazon. Being at the cutting edge of technology one would think that it would not take Amazon with all its resources to enter a small piece of software within in its rather large piece of software which could track the VAT registrations and flag up any unusual activity . There are those out there, much better qualified than I, well it is actually quite complex . Well, we are talking Amazon, a company that handles 60,000 orders an hour with annual revenues in excess of $500 billion pa. We are not talking even about the UK Government which is well known for not being able to introduce large IT projects successfully . This is one of the world’s largest companies. A company that is extraordinarily successful because of its ability to handle data.
Data, the one component of every organisation, which we are constantly being told is the key to future success.
In the world today, data is probably the thing that matters most. It can tell you before the airplane’s brakes fail. It can predict the onset of a natural disaster or forecast when you might suffer a heart attack. This isn’t fantasy or a future state. It’s happening today.Forbes
Yet some fail to keep tabs on it. Amazon will respond to the huge amount of counterfeits that are on the platform, that the reality is the problem is too big. I suspect they would say the same about a flat in Wales. It’s too big.
Daily I speak to customers who are Amazon sellers about the issues that Amazon raise with them and their suppliers questioning genuine product, its origins , make up, suitability and conformity whilst right under their noses there is complete and utter havoc that actually impacts upon their customers indirectly but far more forcefully, but they (amazon) can’t really be bothered with . They will respond saying that have closed thousands of sellers and blocked millions of counterfeits but they don’t actually tell you what gets through. If any retailer of any size, in any major trading nation was to have been found to sell a similar proportion of counterfeits or assisted with large scale VAT evasion they would be closed down over night or at very least severely punished.
The company said it invested more than $700 million and employed more than 10,000 people last year to “protect our store from fraud and abuse.” It also established a “Counterfeit Crimes Unit” last year to refer suspected counterfeit cases to law enforcement.
Amazon has faced criticism from lawmakers over counterfeit products in recent years, and a bipartisan group of US senators recently introduced legislation to try to limit counterfeit merchandise from appearing on online retail platforms.
The INFORM Consumers Act would require online retailers to authenticate the identity of “high-volume third-party sellers, which will help deter the online sale of counterfeit goods by anonymous sellers.” Retailers such as Home Depot and Walgreens support the measure.
Amazon opposes the bill.
“This legislation favors large brick-and-mortar retailers, at the expense of small businesses that sell online, while doing nothing to prevent fraud and abuse or hold bad actors accountable,” the company said last month.
……….Fewer than 0.01% of products sold on Amazon received a counterfeit complaint from customers, the company said. “Those complaints were quickly investigated for accuracy, and Amazon took appropriate action on listings and accounts.”CNN Business
You can be absolutely certain that as soon as one is taken down or a false tax number is discovered another will be there the following day if not sooner. You only have to type the word Disney(just did it) into Amazon for a whole load of Disney Type (quite clearly not Disney licensed product) . How does that happen without Amazon’s acquiescence ?
As an organisation they have quite clearly gone to places no one has ever been to before and in most cases , fortunately, no one wants to.
Never mind all that , what is it I need urgently by tomorrow….